2026 is about to pass its halfway mark, and China's construction machinery industry has delivered an impressive "mid-term report card." According to the latest data from the China Construction Machinery Industry Association, domestic excavator cumulative sales exceeded 120,000 units in the first five months of 2026, with year-over-year growth maintained above 30%, continuing the recovery momentum since last year. What deserves more attention is that this round of growth is not solely dependent on the domestic market — overseas markets contributed more than 40% of the incremental growth, truly achieving a "dual engine" of domestic and international demand.

1. Domestic Sales Market: Policy Dividends and Replacement Cycle

From the domestic market perspective, excavator sales in the first five months of 2026 performed steadily. January posted a strong start, with nearly 50% year-over-year growth; during the traditional peak season in March, year-over-year growth reached 26.4%; May data further confirmed the recovery trend, with both domestic and overseas sales growing over 30% year-over-year.

Two forces are supporting this round of domestic sales growth. First, the large-scale equipment replacement policy continues to take effect. The phased-out old equipment program launched at the end of 2024 has entered a substantive execution stage, with a large number of construction machinery below National Stage II emission standards facing mandatory retirement, directly creating replacement demand. Second, infrastructure investment has remained at a high level. According to the CCTV Finance "Excavator Index," the national infrastructure construction activity index rose significantly in May month-over-month, with major projects across multiple regions commencing construction in concentrated batches, providing solid support for equipment demand.

Worth noting is that crane utilization reached 74% in May, hitting a new high for the year. This means that equipment already deployed is being fully utilized, indicating that end-user demand is genuine and sustainable — not simply "channel hoarding."

2026 Jan-May Excavator Sales Trend

2. Export Market: Explosion in Overseas Mining Demand

If domestic sales represent "stability," then exports represent "fervor."

According to 21st Century Business Herald, Chinese excavator exports grew over 36% year-over-year in Q1, with Southeast Asia, the Middle East, and Africa as the three major markets contributing the main growth. February alone saw an export growth rate of 37.2%, setting a two-year high.

Three core factors are driving the export surge: First, Belt and Road infrastructure projects have entered an equipment procurement peak period, with major projects such as the China-Laos Railway extension, Saudi NEOM New City, and Indonesia's Jakarta-Bandung High-Speed Railway Phase II collectively entering the civil construction stage. Second, overseas mining demand has surged — global commodity prices are running at elevated levels, mining activity for copper, iron ore, and lithium ore has increased significantly, and demand for large excavators and wheel loaders has risen sharply. Third, Chinese brands offer clear cost-performance advantages, with leading companies such as Sany, XCMG, and Zoomlion progressively improving their overseas service networks and gaining market recognition for product reliability.

Distribution of Chinese Construction Machinery Export Growth

3. Leading Enterprises Raise Prices Collectively: A Signal of Industry Confidence Recovery

A telling signal is that starting in May, leading enterprises including Sany Heavy Industry and XCMG Group successively announced product price increases. According to Huasheng Online's analysis, there are three layers of logic behind this. Rising raw material costs are only the surface reason; the deeper driver is that full order books and high capacity utilization rates have given companies pricing power. At the same time, price increases also represent a test of product upgrade and brand premium capability.

For buyers, this means equipment prices in the second half of 2026 are very unlikely to get cheaper. If you have procurement plans, the current window is worth watching. If you would like to learn more about Sany pump truck pricing or XCMG loader latest prices, feel free to contact our sales team for real-time quotes.

4. Diverging Utilization Rates: Uneven Conditions Across Categories

While overall data remains positive, there is a clear divergence across equipment categories.

Cranes are the biggest beneficiary of the current upcycle, with utilization reaching 74%, primarily driven by large-scale lifting demand from wind power, nuclear power, and other new energy infrastructure projects. Excavator utilization remained relatively stable in the 50%-55% range, reflecting the routine pace of earthworks projects. Meanwhile, utilization rates for certain road machinery (such as graders and rollers) remain low, linked to a slowdown in new highway construction projects.

This divergence is a reminder: we should not be blindly optimistic just because the overall data looks rosy. Choosing the right category and the right market is the key to navigating the cycle. EquipNode, as a professional construction machinery supplier, can provide clients with equipment selection consulting and market analysis services.

5. H2 Outlook: Growth Rate Likely to Return to a More Moderate Pace

Considering all factors, the construction machinery market in the second half of 2026 will most likely exhibit a pattern of "running at a high level, with growth moderating."

On one hand, the marginal effect of the equipment replacement policy will gradually diminish. Combined with the high base effect from the same period last year, year-over-year growth in the second half is very likely to come down from 30%+ to the 15%-20% range. On the other hand, while overseas markets have enormous potential, they face trade friction risks — uncertainty in U.S. tariff policy could cause disruptions to some export categories.

However, data center construction is emerging as a new growth pole for construction machinery demand. According to Reuters, Caterpillar has made clear that AI-driven data center construction will provide significant growth momentum. This trend also holds in China — as AI computing demand explodes, data center civil construction projects are becoming a new incremental market for construction machinery.

2026 H2 Construction Machinery Market Outlook

Conclusion

The data from the first five months of 2026 has already proven that China's construction machinery industry is undergoing a quality-driven recovery. Domestic demand has policy support, overseas demand has order backing, and leading enterprises have pricing confidence. For industry participants, the key lies in seizing the right timing — act decisively when the moment is right, and stay patient when caution is warranted.

If you would like to learn more about equipment market conditions or obtain the latest quotes, feel free to contact the EquipNode sales team. We will continue to track industry data for you and provide professional, timely market insights.

*Data sources: China Construction Machinery Industry Association, CCTV Finance, 21st Century Business Herald, Caixin Media, Reuters, and other public reports*

*Disclaimer: This article is for reference only and does not constitute investment advice. For specific equipment specifications and pricing, please refer to the manufacturer's official information.*